Fast Retailing, owner of the Uniqlo casual-wear brand, jumped 4.2 percent after saying on Thursday it expected operating profit to jump 38 percent to a record high 175.0 billion yen for the year ending in August 2017.

Fast Retailing's good news contributed a hefty positive 58 points to the Nikkei.

The Nikkei opened a tad lower, but turned positive in midmorning trade. At 0157 GMT, the index rose 0.2 percent to 16,809.55. For the week, it has fallen 0.3 percent.

U.S. stocks fell, hit by selling in financial stocks, while investors have been worried about U.S. companies' third-quarter earnings since Alcoa's dismal forecast disappointed the market when earnings season began earlier this week.

"Until new catalysts emerge, investors will likely monitor both U.S. earnings and Japan Inc's earnings," said Kazuhiro Takahashi, an equity strategist at Daiwa Securities.

The Nikkei will likely rise and trade above 17,000 once the market has priced in the results, Takahashi added, as well as reflecting expectations of a U.S. rate hike in December.